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Lost house because agent never submitted bid

6 years ago

I've been looking for a house for the past 6 months in a super competitive market that favor's the seller. I found my diamond in the rough. It had everything I wanted at a price about $10k cheaper than I was hoping to pay. I told my agent to submit a bid $5k over asking to ensure I would win the bid. There was a time deadline to meet. I informed my agent 1.5 hours before the deadline to submit the offer, then finalized some paperwork an hour before the deadline. I then went to the movies with my two kids. The movie was two hours long. I got out of the movie and saw two emails from my agent: first email - about an hour into the movie saying she thinks we can get the house for less than my offer of $5k over asking and to call her - I didn't right away because I had it on silent in the movies; second email - five minutes before the movie ends - says we lost because we never submitted a bid. I'm still digesting what happened, but it sounds like my agent tried to get me a lower price, while I appreciate it, that ended up costing me the house. To me, this was a colossal mistake on my agent's part. I wanted the house, told her to submit a bid, and I was fine overpaying by $5k if it would have secured the house. She tried to "help" by getting a cheaper price which blew it for me. Convince me not to fire her.


Rough timeline:

10:00am - see house with agent

10:30am - told agent to submit bid

11:00am - finalized paperwork for agent to submit bid; agent said there was one other offer which was at asking price so I had them beat by $5k

12:00pm - seller's deadline to accept offers

12:30pm - go to movies with my kids

1:30pm - got an email from my agent saying she thinks we can get the price for lower than my $5k over asking and she left a voicemail saying to call her; I'm at the movies and had my phone on silent so I didn't see it right away.

2:25pm - my agent tells me that I lost the bid because it was never received by the seller; my agent was waiting to see if I wanted to submit a cheaper bid so never submitted my original offer of $5k over asking

2:30pm - I get out of the movies and see the emails from 1:30pm & 2:25pm. I call my agent and she says its too late the seller accepted the other offer at asking price

Comments (15)

  • 6 years ago

    Based on the timeline, you didn’t go to the movies until after the deadline to submit, so she could have gotten a hold of you, and anything that happened after noon doesn’t really seem relevant. I wouldn’t continue working with someone who ignored my express directive, because I would constantly be worried about it happening again and I shouldn’t have to baby sit a professional.

  • 6 years ago
    last modified: 6 years ago

    Thanks for the reply Kirsten. You are correct, I didn't go to the movies until after the deadline of 12:00pm. I submitted everything my real estate agent needed by 11:00am. I thought it was a given that she was going to submit the bid. I didn't even think of confirming she actually sent my bid, because like you said I shouldn't have to babysit a professional. I'm going to fire her today. I have to check my contract as I think she made me sign some buyer exclusive thing that would mean I can't buy a house until mid March without her getting her commission (but I doubt I would close anything by then anyways).

  • 6 years ago

    You’re welcome :) And I’m sorry you lost this property, but for what it’s worth, I often find that the thing I waited longer for was meant to be! I would also check your contract to see if her failure to submit constitutes a breach so that you can terminate the relationship. You could also express your upset and concern and see if she’s willing to just part ways amicably now. But you certainly shouldn’t have to wait a month to continue your search, or otherwise be forced to work with someone who has already failed to act in their duties.

  • 6 years ago

    I think you're right! I read my contract and it says I can get out if the real estate agent defaults on their obligations. One of the obligations in the contract is: "Present all offers to and from Buyer in a timely manner regardless of whether Buyer is already a party to a contract for the Purchase of Property".


    Do you think that is my way out?

  • 6 years ago

    It probably is. It’s likely that after this experience the realtor doesn’t want to work with you any more than you with her. Advice: next time you submit a bid don’t go MIA on your realtor.

  • 6 years ago

    Once I finalized my paperwork, my real estate agent never said anything about having complete availability. Especially since the deadline to submit had already passed I thought I was safe and the bid had already been forwarded to the seller. My real estate agent went rogue in trying to lower my offer.

  • 6 years ago

    "I thought I was safe and the bid had already been forwarded to the seller."

    Your mistake!

  • 6 years ago
    last modified: 6 years ago

    That's great advice, Denita. I will definitely be asking for a termination letter in writing signed by all parties.

    On a side note - the house I wanted got listed Thursday morning. They stopped taking offers at 12pm Saturday. I know some sellers want to move fast, but I think it would be smart to let offers roll into Sunday night, giving people at least one full weekend to look at the house and make an offer. They cost themselves $5k or possibly more on this one.

  • 6 years ago

    Just so you know, it may pay you to make a back up offer on this one in case the first one falls through. You aren't obligated to keep your backup offer in place if you find something else you can withdraw it.

  • 6 years ago

    Yes make a back up offer! My agent didn't suggest that I do so on a house I really liked and it did come back on the market.

  • 6 years ago

    I know some sellers want to move fast, but I think it would be smart to let offers roll into Sunday night, giving people at least one full weekend to look at the house and make an offer.

    I don't like my money being held hostage. I would be very hesitant of making an offer and letting the sellers sit on it for a weekend while they looked for better offers. I respect you hoping for a better offer, but then reject mine and allow me to look for other properties to make offers on. I am not going to make an offer that expires 4 days later so I can accommodate your search for the best deal. I have submitted several offers that expired before announced best and final dates and I love those, because they are less risk to me, several times I have decided not to honor an offer that the sellers didn't accept before expiration.

  • 6 years ago

    I fired her today! We both signed a termination agreement. I'll find another agent and start the hunt over again.

  • 6 years ago

    Good luck

  • 6 years ago

    I would have contacted the LA to make an offer, you can bet the LA wants your offer to succeed. I understand you may not have dual agent in your area, if so, ignore my comment.